Coworking is the New Form of Hospitality: Why Workspace Investors Should Take Advantage of this Trend

Coworking is the New Form of Hospitality: Why Workspace Investors Should Take Advantage of this Trend

updated July 7, 2020
Coworking is the New Form of Hospitality: Why Workspace Investors Should Take Advantage of this Trend

The coworking business model is evolving

With the addition of concierge-type and food and beverage services, for example, coworking is the new form of hospitality. Far removed from the stereotypical business centre and place to work temporarily, coworking spaces have gradually become a home away from home for many.

For landlords and owners looking to maximise their returns, investment into the coworking sector can be very rewarding. Overall, vacancies are limited and achieved rental rates per  of floor space offer superior returns. 

Savvy investors are, therefore, currently focused on coworking spaces with its evolving culture of hospitality. The aim: capitalise on the trend by investing in the coworking sector through commercial property bonds.

The culture of hospitality is an important building block for coworking success

Developing a culture of hospitality in coworking spaces has a dual purpose. Firstly, it enhances the quality and variety of customer services, thereby building brand awareness, and, perhaps more importantly, maintains customer loyalty. Secondly, including a hospitality element into coworking spaces does not only deliver impactful additional business services but more importantly, additional revenue streams for the business itself. 

In London, an increasing number of coworking and flexible spaces are embracing and including hospitality components as an important building block for their continued success. At the end of the day, success is all about customer satisfaction and securing repeat or long-term business. In today’s modern world, it’s vital to build a culture and loyalty to drive profitability.

This line of thinking is driving a whole host of new options within coworking and flexible workspaces that match the customer-centric model of the hospitality sector. Indeed, this hospitality and workplace mix is the USP of successful coworking companies. 

But let’s step back and look at how coworking spaces are evolving into a hospitable place where people want to belong. 

Developing uniqueness… and loyalty 

Hospitality is not only about the hardware of desks, the physical space and the amenities provided. In coworking, the concept of hospitality is about making people feel comfortable in their workspace and, as a result, productive and able to achieve their work goals more effectively. It’s all about personal attitude and personal relationships.

Based on such an approach, a coworking space can attract and retain a specific type of member, as well as develop its own distinctive identity and member loyalty—and thereby profitability.

Hospitality service mentality

  • Understanding and responding to customer’s needs

Understanding customers and reacting quickly to their requirements is of the utmost importance. This may be about anything and everything from technology to spatial arrangements, or the use of a streamlined entry or registration process. The goal? To create a more satisfying client experience, help with client retention and grow the business.

  • The personal touch

Having personal interaction and connection with a client is what hospitality is all about. Doing something unexpected to make them feel special and welcome makes people using coworking spaces feel appreciated… and loyal.

  • Feedback/suggestions/ideas from members

Regular feedback from members on services or an invitation to openly share suggestions and ideas will help a coworking office improve its service offerings. After all, the patrons usually know best. Listening to the needs and wants of members of the coworking space will help the business grow and perform better in the future. 

  • Better in coworking spaces than in restaurants, coffee shops & cafes

A sub-trend of coworking has been working from coffee shops, cafes or restaurants which may offer cheaper rates, but not a dedicated work environment. 

Overall, coworking spaces deliver a superior working environment in that they offer more networking and business interaction opportunities. It’s, therefore, possible to strike the right balance of social networking and work productivity.

Furthermore, restaurant or coffee shop spaces often lack suitable technical support which is critical for any start-up business. Purpose-designed coworking spaces invariably have excellent internet/cloud computing facilities.

Investing in Coworking spaces in UK 

Coworking industry statistics

Why invest in coworking property bonds?

As a relatively young business model, coworking space design, the services provided and the overall work/play culture are continually evolving. From originally being simple office space where it was possible to “cowork” with like-minded professionals, to becoming places where it is possible to work, eat, play and sometimes reside. 

Indeed, many real estate analysts feel the growth in the UK coworking market is just beginning, with expectations that the stock of flexible office space will triple in size—until gradually representing 5-10% of office inventory in many markets. 

All of this provides immense opportunity for investors to invest in the coworking sector. Indeed, the prospects are bright, especially with the hospitality add-ons bringing more opportunities for extra revenue streams. 

Whether you’re a keen property investor or are a seasoned investor looking for above-average returns, investing in commercial property bonds with asset-backed coworking properties is a great start. Knowing how secure the investment is will help you in making the right financial decisions about where to achieve attractive returns from your investment.

Nao Group’s coworking property bonds

Invest in Nao Group’s commercial property investment bonds and entrust us to get a development underway and take care of the myriad aspects involved in property development. Although Covid-19 has impacted us all, Nao Group is very excited at the positive outlook for the coworking sector as a whole. 

So, if you’re looking for great asset-backed investments into coworking spaces and are interested in learning more about commercial property investment bonds, why not contact us today. Alternatively, you can learn more about our company.

Nao Group is a commercial property developer creating coworking spaces in London and around the world: building communities, not just places to work!